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A new report from crypto research firm Bitooda says China accounts for only 50% of Bitcoin’s global mining capacity and the United States 14%.
The data stands in stark contrast to previous findings from the University of Cambridge’s Center for Alternative Finance (CCAF), which rated China’s share of the world hash rate at 65% and about 7.2% for the United States. .
In the July 15 report, produced with the support of asset manager Fidelity Investments, Bitooda says it has examined several public sources, including “confidential conversations” with miners, rig manufacturers and dealers to determine the areas with the greatest mining capacity. of BTC.
“We were able to locate ~ 4.1 gigawatts (GW) of power at 153 mining sites, including 67 sites or ~ 3 gigawatts of power capacity, with energy price data provided on condition of anonymity,” he said. .
The result came with China, which accounts for 50% of the total global hash rate. This seems to undermine previous estimates and the widespread opinion that the Asian country controlled much of the Bitcoin mining in the world today.
With a 14% share of the world’s mining capacity, the US appears to be growing rapidly as a major bitcoin mining center, according to the study. Russia, Kazakhstan and Iran each account for 8%, Canada 7%, Iceland 2% and the rest of the world 3%.
But there is a loophole. “Our conversations lead us to believe that we have accounted for most of the capacity in the US, Canada and Iceland, but only a small fraction in China and the ‘rest of the world’ category,” admitted Bitooda.
In terms of electricity costs, Bitooda found that half of BTC miners are currently paying an average of $ 0.03 per kilowatt hour (kWh), a drop from $ 0.06 / kWh in 2018. On average, to miners it cost $ 5,000 to mine a bitcoin, he said, but older mining machines will need less than $ 0.02 / kWh electricity to break even.
In China, a significant portion of local capacity migrates to provinces such as Sichuan and Yunnan to take advantage of lower energy prices during the flood season (May to October). During this period, too much rainfall results in excessive production of hydroelectricity, which is sold to BTC miners for less than $ 0.01 / kWh.
“We are against conventional wisdom, which suggests that low electricity prices drive hashrate growth during the flood season,” Bitooda explained.
“In our view, the flood or water season shifts the cost curve down for 6 months of the year, leading to lower sales of Bitcoin to fund operating expenses as miners build up capital to fund capacity growth. “, he added.
What do you think of Bitooda’s bitcoin mining estimates? Let us know in the comments section below.
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